Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens Wu Yanzu in South China for the delivery of clues! CTOnews.com Sept. 23, Embracer Group held its annual general meeting on September 21. CEO Lars Wingefors reviewed Embracer's financial highlights as of March 31, 2023, noting that the company expects results to be much better despite a 121% increase in revenue and a 43% increase in adjusted earnings before interest and tax.

One of the biggest setbacks for Embracer was the failure of a previously planned deal that is expected to generate more than $2 billion in contract development revenue over the next six years. Wingefors also attributed the lower-than-expected results to PC and mainframe operations, which had "significantly lower profit margins compared with the same period last year" for the following reasons:

The game is postponed.

The response to some versions was lacklustre

Consumers' purchasing power is weak

The return on investment of issued games (such as the restart version of Mafia Saints) is low.

It is worth noting that by the end of fiscal year 22 / 23 (March 31, 2023), Embracer had invested a total of SEK 11.4 billion in its games (CTOnews.com Note: currently about RMB 7.47 billion), of which SEK 2.1 billion was related to released games and SEK 9.3 billion was used for follow-up development.

Last year alone, the company invested 5.6 billion Swedish kronor (currently about 3.67 billion yuan) in game spending.

Wingefors then discussed the restructuring plan announced by Embracer in June after a failed $2 billion deal. The company's current goal is to save at least 2.9 billion Swedish kronor (currently about 1.9 billion yuan) in capital expenditure and at least 800 million Swedish kronor (currently about 524 million yuan) in management fees by fiscal year 2024 (starting April 1, 2024).

Embracer has laid off workers at studios such as Beamdog, Gearbox Publishing and Crystal Dynamics, as well as completely closed Campfire Cabal and Volition. But restructuring is still under way, and more divestments are likely by March 31, 2024.

"We are finally deciding to restructure or reduce the size of some teams and will close some studios," Wingefors said.

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